CapitalPitch is a digital Investment Firm for private technology Startups and investors.
We accelerate founders and Startups for impact on the world. We assist Pre-Series A technology Startups become investor ready and introduce them to sophisticated, professional and institutional investors. We provide a global online capital raising platform, we have our own Venture Capital investment funds and we provide advisory services from Seed to IPO.
We help investors by being a comprehensive filter, showcasing revenue-generating startups with rigorous and transparent due diligence. As a result, startups raise capital more quickly and effectively, and investors are only presented with amazing curated deals in a format they are looking for.
CapitalPitch was founded by Emlyn Scott and Jeremy Liddle, who both experienced the frustration of capital raising first hand. CapitalPitch is backed by an elite group of investors, including some of Australia’s leading family offices, who believe in CapitalPitch and the united desire to solve the capital raising problem for early stage businesses and investors.
CapitalPitch uses an in-house proprietary technology platform to streamline the end-to-end process of start investing from sourcing, filtering, due diligence, investing and monitoring.
The software’s genesis was as our own internal management tool we designed to coordinate and systemise the volume of startup investment opportunities presented to us. We have found that startups all too often are simply not investor-ready, investors are inundated with deals and the vast majority of these deals are subpar. The average VC will only invest in 0.5% of the opportunities they see (angels are around 2.5%).
Startups need to stand out and present themselves properly. Investors want to see better deal flow. We created our systemised technology platform to help with this. The tech platform solution efficiently and effectively curates a startup from the moment they are thinking of raising capital right through to closing their round and beyond.
No. CapitalPitch Ventures Fund 1 is a lead investor first and foremost. We use advanced technology to filter thousands of revenue generating businesses down to a handful of exceptional businesses, conduct thorough due diligence and present to our investor network for co-investment with us.
Yes. CapitalPitch Ventures is licenced as a Corporate Authorised Representative (CAR #1253421) of Pinnacle Securities Pty Ltd ABN 61 608 667 778 (AFS Licence # 485760).
Of course. There are several ways you can communicate with us. However, please first check this FAQ area as it contains most of the questions we get commonly asked.
Want into apply for investment – https://capitalpitch.vc/apply-for-funding/
Thinking of investing in our Fund – https://capitalpitch.vc/invest-in-the-fund/
If you are not completely happy with the service we have provided, you can register a complaint online or by phone. We obviously want to do whatever we can to sort the issue. To submit a complaint, please choose from the following options:
A lead investor is an investor who is:
- recognised as an experienced investor and/or experienced in the startup’s field
- first in the round
- sets the price and terms
- puts his “name” to your raise
- introduces their network to your raise
A lead investor is the first and usually the most recognised investor in a capital raise. They conduct the due diligence and put their name and brand to the capital raise. They set the valuation and the investment terms so other investors can follow. They also often open up their investor network to help the business raise capital. Sometimes the lead investor will receive preferential terms in return for acting as the lead investor.
CapitalPitch acts as a lead investor into every startup that completes our process.
We are tech-enabled and transparent, with a desire to propel founders to make an impact on the world. A key difference is that we get startups investor ready prior to a funding conversation, as it improves the outcome for both parties. And once we’ve invested, we surround them with everything they need to prosper.
We invest in the Seed and early Series A stage, which tends to be earlier than most VCs.
We like to act as the lead (or co-lead) in every investment.
We aren’t suggesting other VCs aren’t some of these in varying degrees, but these are the characteristics at our core.
We welcome applications from quality Australian Seed or Series A stage startups that are looking to raise between $A500,000 to $A3,000,000. This generally means we don’t invest in companies with a pre-money valuation above A$10 million. If you would like to raise above this level, still drop us line. At the very least, we may be able to suggest an alternative.
We look for tech-enabled startups generating revenue, addressing a huge problem and with elite founders with hustle. We are looking for the following qualities:
- Raising between $500k and $3m
- Minimum $10,000 per month revenue
- High growth rates
- Tech enabled
- Highly scalable
- Experienced and coachable founder(s)
- Unique USP & defendable IP
We are industry agnostic (ie. don’t care what industry you are in), but we must be able to understand your business and see avenues where we can add value. Generally, if you are tech enabled, are generating revenue and are a high growth opportunity, we’re interested. As a caveat; we generally shy away from deep tech and cutting edge biotech and do not invest in capital intensive, unethical or highly specialised businesses.
It’s subtle but important. ‘Tech-enabled’ businesses are those whose business lines/products are aimed at dramatically improving business processes via technology applications. It could be in the tech space -equally it could be in HR, manufacturing, architecture, financial services etc. What we care about is that they will disrupt an industry; using tech to redefine the cost and/or revenue curve and thus transform the basic economics of the industry for the better.
We love coachable, open, flexible and founders that “get shit done” with a steely-eyed belief and the integrity to entrust with our investors’ capital.
We aim to expedite your capital raise without cutting corners. Our model is designed to move a start-up from application through investor readiness, due diligence and funding within around 8-12 weeks. There is a lot to do.
Within this overall expected timeframe, we aim to get promising investment candidates to Letter of Intent stage within 2 to 3 weeks. The time it takes to complete your investor-readiness depends on your initial readiness level, your experience and your desire to complete everything swiftly. Focused startups can complete the investor readiness parts in as little as 4-6 weeks. Most startups unfortunately realise they have a lot of work to do to be truly investor ready and take longer.
Our post-revenue discipline is fairly hardcoded. We ‘may’ entertain an exceptional pre-revenue opportunity on a case-by-case basis, but it’s unlikely.
Only as a follow-on investment. We and our investors want our focus to remain on the best Seed and early Series A opportunities. We may entertain international opportunities, but they need to be ESVCLP compliant, which screens out most non-Australian based applicants. Our intent is to broaden our geographic focus in future funds.
If you have a strong lead already, great! Assuming we are comfortable with the terms and your documents are up to scratch, we are happy to co-lead and may even follow.
No deal breakers per se, but we do struggle with such things as debt on balance sheet, unclear or convoluted cap tables etc. The minimum revenue hurdle is extremely important, as is being tech-enabled and open to outside assistance/advice. Obviously, a realistic valuation, an appropriate raise amount and raising via preference shares are key considerations.
Anything you share with us is treated with complete confidentiality. We do not sign an NDA’s to begin discussions for several reasons:
- It wastes time and money with lawyers
- We are busy building CapitalPitch and have no interest in copying your business
- It reflects a distrustful relationship between you and us which is not how we like to operate
If you can’t get past the requirement for an NDA to start having a discussion with us then unfortunately CapitalPitch is not for you, and we wish you well in your capital raising. We may consider an NDA as we move deeper into due diligence if necessary, but confidentiality is covered in our Client Agreement which is signed early in the process.
Our investor ecosystem is a combination of high net-worth individuals, successful business leaders, family offices and institutional investors.
The only similarity is their belief in and desire to help small companies succeed. We encourage all our investors to be involved as much as they and the startup believes is beneficial to help the startup grow. Our startups can use as much, as many or as little of our resources, partners and investors as best fits.
Our philosophy is to help the startup wherever they need help and have on hand high quality assistance from sources that understand the challenges of building a small business.
CapitalPitch has produced best-of-breed (and importantly, fair) legal documentation that we expect startups use. As the lead investor will then negotiate and agree the specific deal terms with you – including valuation – with following/co-investors having the choice to accept these terms or not.
CapitalPitch only charges for our investor readiness work when/if we intend to invest. We agree our fees on a case by case basis and have set them at a much lower level than a standard corporate advisor.
Investing With Us
CapitalPitch offers investment via a tax-free ESVCLP fund and co-investment options for the fund investors to obtain larger positions in the companies they really like.
The CapitalPitch Ventures Fund 1 is the flagship vehicle we use for funding the best investment opportunities, and typically acts as lead investor in each startup’s funding round. An investor in the Fund (known as a “Limited Partner” or “LP” for short) will have an exposure, via their Fund holding, to each startup in whom the Fund invests.
When our Fund invests in a startup, we will – capacity allowing – offer the opportunity for our LPs to then invest alongside us in the investment round. Where any remaining capacity exists beyond this, we will then offer the raise to our wider investor/platform network.
CapitalPitch Ventures Fund 1 is an Early Stage Venture Capital Limited Partnership (ESVCLP).
Eligibility to invest is restricted to wholesale/sophisticated investors only within the meaning of section 761G of the Corporations Act 2001 (Cth). In Australia, a wholesale/sophisticated investor is defined as having annual income of $250,000 for the last two years or a net worth of at least $2,500,000.
While CapitalPitch is restricted to wholesale/sophisticated investors only, each country has a different set of requirements that determines the status as a wholesale/sophisticated investor. Your country of residence (the one in which you pay taxes) determines your investor eligibility.
For further details, please refer to our Information Memorandum.
The minimum investment commitment in the fund is A$200,000. There is no maximum.
We have set the Initial Capital Contribution at 35% of your total commitment, with the balance drawn down over a period of 3 to 4 years as investments are made.
Investors invest in CapitalPitch’s Funds will be charged management and fund administration fees, as outlined in the Fund’s Information Memorandum.
Where investors also invest alongside the Fund (as either co-investors or follow-on investors), there is no additional fee.
A key element of the CapitalPitch approach is to offer what is effectively a ‘curated deal flow’ to our investor network. We act as lead investor and perform the due diligence. Where the Fund invests, we also provide the opportunity to invest alongside us on the same terms.
Most likely, but….. the hierarchy in an investment round places the lead investor first (which will be the CapitalPitch Ventures Fund 1) with LPs offered the remaining capacity in the round. Companies will typically have other investors – including existing shareholders – who may like to participate in the raise as well.
If further capacity is available beyond that taken by these parties (which is rare), we may post the opportunity to our wider network.
In general, CapitalPitch is looking for tech-enabled startups generating revenue, addressing a huge problem and with elite founders who hustle. Desired startup characteristics include:
- Raising between $500k and $3m
- Have a minimum $10,000 per month revenue
- High growth rates
- Tech enabled
- Highly scalable
- Experienced and coachable founder(s)
- Unique USP & defendable IP
We are industry agnostic but we must be able to understand the business and add value. We do not invest in capital intensive, unethical or highly specialised industries.
We expect that on average we would fund 10-15 opportunities a year.
Wherever we can. Most of our deal flow comes from:
- Our investor network (who use us to screen their dealflow via our process
- Our website – we get more traffic than any other VC or crowdfunding platform in Australia
- Direct approaches from the startup community
We love to hear about new opportunities. Drop us a line and we can put it through its paces like any other opportunity. We can also flag it as introduced by you for preferred co-investment (assuming we like it enough to invest).
Send them to our online form: https://capitalpitch.vc/apply-for-funding/
Yes absolutely. We can save you the hassle of sifting through deals to find the gems.
Simply send them to us and we’ll review them and note you as the source of the deal.
We wrote a blog post that describes a number of reasons why you should consider investing in startups.
You can read it here. Potential benefits include:
- High average returns
- Potential for outsized returns
- Improved portfolio performance via diversification
- Favourable tax treatment (as an eligible ESVCLP investment)
- Affect life changing solutions
- Job creation
- Getting involved
The CapitalPitch Ventures Funds offer the following advantages:
- Access to some of Australia’s best tech-enabled startups in a simple, effective and diversified manner.
- Limited partners have no tax liability on income or capital gains they receive from the ESVCLP.
- Limited partners receive a non-refundable carry forward tax offset of up to 10 per cent of their eligible contributions
- Priority rights to co-invest beside the Fund in the investment round
- Flow through pre-emptive rights to invest in the subsequent investment round
Investing in early stage securities is high risk. Investors wishing to invest in this asset class should take the time to understand the risks and have a strategy in place for mitigating those risks. A detailed outline of the risks of investing in venture capital can be seen in the Fund’s Information Memorandum.
You can do both via CapitalPitch. The Fund offers investors a diversified portfolio startups, whilst investors in the Fund may also be selectively invited to invest directly as a co-investor.
If you invest via our Fund, we will handle everything. CapitalPitch Venture Fund 1 owns the shares on your behalf and you own an interest in the Fund. If you co-invest, you will hold shares directly in the business, which will require you to sign individual legal documents for each individual business, and be issued shares in that business.
Of course. We encourage our investors to communicate with the startups, particularly if you intend to co-invest. Most startups will be keen to engage with all potential investors directly, particularly those of a strategic nature. We have formalised a direct communication line with each startup via the CapitalPitch platform.
CapitalPitch has intermediary lawyers that produce fair documentation between the startup and the Fund as lead investor. However, you are of course free to consult your own lawyers at your own expense, particularly in relation to an intended co-investment.
Once an investment raise is complete, we expect a startup to keep investors regularly updated on the performance of their business.
We make this easy via our platform where each investor in the Fund can see the investments the Fund has made and track in real-time the performance of each underlying company. You can see:
- Regular Shareholder updates
- Live monthly P&L and Cashflow numbers (our platform is linked to Xero)
- Monthly KPIs performance (actuals vs. forecasts)
No. We never disclose how much money you have invested in the Fund or in any co-investment. These amounts remain private to each investor. Amounts invested are only shown in each investors private dashboard on our software platform.